IATA says airlines suffered 'worst year' in 2009

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200hr Wonder
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IATA says airlines suffered 'worst year' in 2009

Post by 200hr Wonder »

Yup it is as bad as it seems...
http://news.bbc.co.uk/2/hi/business/8482654.stm
IATA says airlines suffered 'worst year' in 2009

The year 2009 saw the biggest decline in air passenger traffic in the post-war era, according to the International Air Transport Association (Iata).

"In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen," said the group's boss Giovanni Bisignani.

Passenger traffic dropped by 3.5% from a year earlier, while freight traffic fell 10.1% as the downturn hit demand.

However, figures for December showed a rise in traffic of 1.6% on a year ago.

'Spartan year'

Despite the improvement at the end of 2009, Iata said 2010 would be a tough year for airlines the world over.

"The industry starts 2010 with some enormous challenges," Mr Bisignani said.

"The worst is behind us, but it's not time to celebrate. Adjusting to 2.5 to 3.5 years of lost growth means that airlines face another spartan year, focused on matching capacity carefully to demand and controlling costs."

African airlines suffered the most in 2009, with passenger demand down 6.8%.

Asia-Pacific and North American carriers saw demand fall by 5.8%, while European airlines suffered a 5% fall in demand.

But Middle Eastern carriers saw passenger demand climb 11.3%, while Latin American airlines experienced a 0.3% rise.

Price wars

Iata has estimated that airlines collectively lost $11bn (£6.8bn) last year, and stand to lose a further $5.6bn this year.

Analysts said that price cuts designed to attract customers would continue to eat into airlines' profits.

"Continued fare wars between airlines mean that yields and profitability will be low. Airlines are struggling to fill their airplanes and discounted ticketing has done little to alleviate the pressures on their costs," said independent airline analyst Saj Ahmad.

"Capacity has come out of the global airline system, but until a few airlines perhaps exit the industry through bankruptcy or mergers, there is still a very long road until we see serious stability, let alone growth."
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Re: IATA says airlines suffered 'worst year' in 2009

Post by CBSW »

Where was that post saying the industry is seriously moving... and there was mass hiring? LOLZ
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flying4dollars
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Re: IATA says airlines suffered 'worst year' in 2009

Post by flying4dollars »

CBSW wrote:Where was that post saying the industry is seriously moving... and there was mass hiring? LOLZ
I don't know about 'seriously moving' but WestJet's aim to hire 200 over the next 2 years and AC's plans to resume in March this year is a good start. Porter took on a good number of guys as well. So, there is movement, and there will be more and that's all we need to see and hear for now.
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Rolex
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Re: IATA says airlines suffered 'worst year' in 2009

Post by Rolex »

What is your source for the hiring plans for Air Canada? I know several pilots who are interested.
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Re: IATA says airlines suffered 'worst year' in 2009

Post by Sidebar »

But Middle Eastern carriers saw passenger demand climb 11.3%
Al-Qaeda trainees moving from one course to another?
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Re: IATA says airlines suffered 'worst year' in 2009

Post by SeptRepair »

flying4dollars wrote:
CBSW wrote: I don't know about 'seriously moving' but WestJet's aim to hire 200 over the next 2 years and AC's plans to resume in March this year is a good start. Porter took on a good number of guys as well. So, there is movement, and there will be more and that's all we need to see and hear for now.
I heard the same thing a couple days ago about Air Canada. With JAL going belly up, AC would be gobbling up some of their routes and increasing their pilot pool. It could all just be a rumor, but at least its a positive one.
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Re: IATA says airlines suffered 'worst year' in 2009

Post by yycflyguy »

I like it. A positive rumour.

Where would AC find the extra FINs to do long haul stuff? Unless the 787 orders come waaay sooner or they pick up some more leased 767s don't know how they can fill the void. If anything it will be other Star Alliance Members picking up the slack. I know United had a hard on with the idea of stealing some market from JAL. AC just announced 7 new transborder routes out of YYZ and on a selfish note, I hope the announced SAN flights will have a nice long layover in Old Town.

So I can't see hiring based on this but I am sure hope I am wrong.
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